The Research On Internal Control Of The Export And Import Bank Of China Hunan Branch

Into2013, the impact of the U.S. subprime mortgage crisis brought about thefinancial crisis has still not completely subsided, the21st century world economy tomaintain stable development, a necessary requirement for a stable financial system.Especially for China, the Bank of position in the financial system as well as thenational economy is dominant, so the ability to enhance the bank’s internal control is amajor issue Chinese regulatory authorities as well as the banking institutions all needto face. Import and Export Bank of China, founded in1994, is directly under the StateCouncil, the government-owned national policy banks, Export-Import Bank of ChinaHunan Branch is a business of the bank’s branches. Unlike provincial branches ofother banks, Hunan line is not under the city and county-level branches, businessmarketing, for the branch level are concentrated in the province, so the operating riskfaced by the bank, the credit risk is more concentrated. With the rapid development ofthis line of business, some contradictions and problems have been exposed, especiallycredit risks faced by branch operations, market risk and operational risk. Facing thenew situation and new tasks, how to enhance the level of the bank’s internal controls,effective prevention and control of the risks associated with an urgent and importanttask.In this context, this paper discusses the Export-Import Bank of China HunanBranch of internal controls and the implementation of prevention and controlstrategies to protect. The article begins with the development of the theory of internalcontrol banks and important theoretical basis for review, on the basis of analysis ofthe Export-Import Bank of China Hunan Branch of internal control problems and theircauses through statistical data, to determine the distribution of risk events andfrequency. Then referring to the five elements of internal control, combined withtypical cases analyzed, the line for operational risk, credit risk and preventionmethods prevention and control strategies. Finally, on the full implementation of theabove strategy, put forward relevant safeguards.This paper has two meanings. One is to promote the sound management of theExport-Import Bank Hunan Branch. China banking financial sector as the main causeof China’s financial system instability, severe cases can affect national security andsocial stability. Therefore, the construction and improvement of effective internal control mechanisms to identify, assess risks and take appropriate preventive andcontrol measures to avoid the banking crisis and the financial system safety, securitycontinued development of the national economy has a strong practical significance.Second, improve the management level of the Export-Import Bank branch in HunanProvince, to promote their better cope with the international financial competition.Export-Import Bank located in the Bank for International Cooperation, the mainresponsibility is to promote China’s foreign trade and international economiccooperation, in the increasingly competitive financial background, and it is bound tomeet the challenges of economic globalization and financial liberalization. Richexperience in foreign banking market competition, high-risk awareness and controlmeasures means, with a wealth of internal control and risk management experience.Therefore, to improve internal controls, the Export-Import Bank of internationaldevelopment, and to promote a positive response to the financial globalization andopening up of China’s financial reform has important significance.